Crypto Exchange Kraken Develops Marketplace To Arrange Token Loans

2021-12-24 20:42:21
Kraken’s New Venture

One of the leading crypto exchanges in the world, Kraken, is currently working to develop NFTs marketplace where users can get token-backed loans. According to the CEO and founder of Kraken, Jesse Powell, users will be able to use these token loans as collateral.

Moreover, the way this works is that both Kraken and its upcoming marketplace will have different tasks. The crypto exchange is working on figuring out the liquidation value of the deposited NFTs, in order for the users to use them as collateral.

While this is not the first token-based loan project, it is certainly one of the biggest to date. That is because up to this point, the only ones who tried this method were smaller-scale DeFi projects and companies.

One such is DeFi project NFTfi, a similar decentralized venture that started out back in February of 2020. Another such example is Nexo, established in 2018. In fact, it is safe to say that Nexo is the go-to operator for crypto loans. There is even an option to get a mixed loan of both fiat, and cryptocurrencies.

New Era

That is why many experts believe that Kraken beginning to develop the token loans department will certainly shake things up. Especially since Kraken is one of the top crypto exchanges by trading volume in the world. And considering the number of resources and innovations that it brings to the table.

It is safe to say that Kraken follows into the footsteps of some of its greatest rivals who also are also working to develop their own NFTs platform. One such operator is Coinbase, which is currently in the process of finishing up its NFTs marketplace.

And we cannot blame them at all. Considering that the past couple of months NFTs literally exploded. A testament to this fact is the + $2 billion in trading volume that OpenSea reported in just one month. And the way things are, it seems like there is no stopping.

Related Posts

Leave a Reply